Director ratings update

We promised an update for subscribers that have given us their feedback on proposals that we outlined to introduce director ratings in last month’s issue. This topic is also being debated at The NED’s events this autumn.

To date opinion has been divided, although slightly more than half have been positive. Investors and individuals wishing to become independent directors are on one side of that divide. On the other side of it are what might be termed the fund director establishment.

Some of The NED’s best-known independent director subscribers are sceptical. Those in this group have a number of objections. Their main one is that individual director ratings could be misleading or meaningless. They would not necessarily be a true reflection of someone’s suitability for a fund board position. They risk being superficial and could easily become subjective.